Team Shirts issued 10-year bonds with a face value of $100,000.The bonds carry a 7% stated interest rate and pay interest once a year.They were issued when the market interest rate was 6%.
a.Calculate the present value of the bond issue.
b.Were these bonds issued at a premium or at a discount?
c.What is the amount of the premium or discount on the bond issue?
d.Calculate the amount of the amortization of the bond premium or discount for the first year,using the effective interest method.

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The Answer of Team Shirts issued 10-year bonds with a face value of $100,000.The bonds carry a 7% stated interest rate and pay interest once a year.They were issued when the market interest rate was 6%.
a.Calculate the present value of the bond issue.
b.Were these bonds issued at a premium or at a discount?
c.What is the amount of the premium or discount on the bond issue?
d.Calculate the amount of the amortization of the bond premium or discount for the first year,using the effective interest method.

Team Shirts Issued 10-Year Bonds with a Face Value of $100,000.The